Despite shipments surging over Rs 33,000 crore in FY22, the future ahead looks tough for knitwear exporters in Tiruppur as raw material prices have increased due to the pandemic outbreak. As per the Tiruppur Exporters’ Association, in the last 18 months, prices of cotton yarn increased steadily alongwith accessories prices. MSMEs in Tiruppur are being compelled to execute their orders on increased prices, despite incurring losses or getting a wafer-thin margin.
Exporters demand new schemes
Raja M Shanmugham, President, TEA says, the crisis needs to be addressed on a war-footing. The Centre needs to announce a new scheme like ECLGS to allow MSMEs to avail additional credit facility of 10 to 20 per cent of existing limit, he adds. Knitwear exporters in Tiruppur are being compelled to complete committed export orders for the same price of garments, as buyers are not inclined to increase prices. Exporters are also facing a decline in the quantity of orders being placed compared to the corresponding period of last year.
Training workers to match global standards
Currently employing 600,000 workers, Tiruppur directly houses the most number of women entrepreneurs, and migrant workers from north and northeast. The city contributes about 60 per cent of total knitwear exports from the country and exports only cotton based garments. This offers it ample scope to increase its share in the global market by focusing on value added and synthetic products, adds Shanmugham.
The association plans to construct 100,000 houses for its garment workers. This would enable laborers to shift permanently from their home villages to these industrial clusters. The houses will have all required amenities, says TEA. The association is also training existing laborers to compete with global players like China, Korea, Bangladesh and Vietnam. It is seeking the Centre’s help to upskill workers to match global standards. Its primary goal is to enhance current exports’ turnover to around Rs 1 trillion in another two to three years, adds S Sakthivel, Executive Secretary, TEA.
